Preparing a Tax Computation

Key requirements

Start with the financial statements and identify non-taxable receipts, disallowable expenses and investment income assessed separately. Accounting depreciation is not automatically a tax deduction; applicable capital allowances are considered instead. The computation may also include renovation deductions, brought-forward losses or allowances, and approved donations, each subject to its own conditions. Prepare supporting schedules annually before completing the return. Form C filers submit these documents with the return; C-S and C-S (Lite) filers retain them for request. A change in financial year, a first period longer than 12 months or a non-Singapore-dollar functional currency requires the additional treatment described by IRAS. Do not equate the profit figure in the accounts with taxable income.